How Technology Has Transformed The Real Estate Industry
The Real estate industry ages like wine and so realtors and real estate agents business. Though in the trillion-dollar industry, there are many big players already dominating their targeted realms. This makes it harder for startups and newbie real estate agencies and companies to generate leads.
But thanks to PropTech, short for property technology, it has grown exponentially between 2015 and 2019 by 1072%. From investors to tenants can feel the impact of technology on real estate, transforming all facets of the real estate market, including:
- How real estate is placed for investment or leasing;
- How properties are developed and constructed;
- The way real estate are underwritten, valued, financed, and leased;
- How realtors and brokers manage real estate, operate, and ultimately utilize;
- Approaches of Real estate transactions;
- Valuation of housing prices.
On that note, Partner and global real estate sector leader for Deloitte & Touche LLP, Bob O’Brien said, “Accordingly, it is not surprising that entrepreneurs and venture capitalists saw an incredibly large opportunity to disrupt the real estate industry, and the number of PropTech startups and the amount of venture capital supporting them have exploded in recent years.”
So, what do you say? Do you want to create a solution adhering to current real estate technology trends? Don’t you? In that case, you need to understand the future trends in the real estate industry. Thereby you can shape the future of your real estate business, by opting for the right technology.
Then, let us start learning now.
How Various, Innovative Technologies in Real Estate Are Shifting The Paradigm
Buy-sell real estate mobile app solutions
The rise of mobile devices and apps has created an opportunity for a new type of real estate marketplace to emerge – the buy-sell real estate mobile app.
Buy-sell real estate mobile apps allow people to buy and sell homes directly from their smartphones. This eliminates the need for mediators to close the deal, which can save both buyers and sellers a lot of money.
Moreover, by creating a buy-sell real estate marketplace, realtors update their customers about news and tips about the housing market. Not to mention, mobile apps allow their owners to make money via multiple streams, such as featured posts, selling ads, and brokerage.
3D Virtual Tours
3D virtual tours are a powerful marketing and communication tool for real estate businesses. They provide an immersive, interactive experience that allows potential customers to explore properties from the comfort of their own homes.
In addition, you can use 3D virtual tours to showcase a wide range of properties, from single-family homes to multi-million dollar estates. They can also be used to show off commercial properties, such as office buildings and retail stores.
Thereby, you can build relationships with potential customers and keep current customers up-to-date with new property listings. Altogether, the trend drives more leads and close sales.
Transferable ownership with Smart contracts
The real estate market is a multi-trillion dollar industry, but it has been slow to adopt new technologies. One reason for this is the heavy regulation in the industry, which makes it difficult to change the status quo. However, with the advent of blockchain technology and smart contracts, we may see a new era for real estate.
Smart contracts are self-executing contracts that are stored on a blockchain. They are tamper-proof and can be used to automate transactions. This could be a game-changer for the real estate industry, as it would allow for fast and secure transactions without any intermediaries.
For example, Propy is a company that is using blockchain technology, allowing entirely online and self-driving real estate transactions on smart contracts.
Big Data cause speed in real estate workflow
The real estate industry is constantly changing, being disrupted by Big Data. Big data is a term for the large and ever-growing data sets that are too big for traditional data processing applications. Big data has the potential to completely change the real estate industry. It can help agents find new leads, assess market trends, and price homes more accurately.
Big data is also helping to create a new class of real estate investors. These investors are using big data to identify undervalued properties, better understand their clients, target new markets, and predict trends.
Artificial intelligence and machine learning
The use of artificial intelligence (AI) and machine learning (ML) has exploded over the past few years, with companies across a wide range of industries deploying these technologies to help with everything from fraud detection to customer segmentation.
The real estate industry is no exception. AI and ML are already playing a role in helping real estate companies operate more efficiently and better serve their clients. The use of AI and ML in real estate has the potential to improve property valuations, reduce the risk of fraud, and streamline the entire property purchasing process.
AI/ML can help real estate businesses with the following:
• Property valuation (Zillow Zestimates)
• Location analysis (Walk Score)
• Home inspection (Houspect)
• Personalized recommendation (property listing matching)
So that’s how, with emerging technologies, the ever-shining real estate industry will continue to rise, opening gates of myriad opportunities for investors and businesses. It’s not necessary to adopt every technology trend. But giving a shot to the one that complements your real estate business services is vital. Because only then you would learn to embrace and leverage tech to automate your business and raise your bottom line.
Hope this post helps you learn the future trends of PropTech.